6 Comments

I'm not sure the choice for the US is all that difficult. Painful, yes. Enormous debt burdens are likely to be inflated away, but Powell made it clear earlier that RE was going to be hit, hard, and that means rates will be higher, longer, than many of the equity bulls believe.

Expand full comment

Imagine if the FED publicly accepts, even e temporary, a 4-5% of inflation. Silver and Gold limit up ?

Expand full comment

My inbox is overflowing with "reputable" firms telling me that the "bottom is in", "time to start loading up on equities", etc... all because inflation has peaked and the Fed Band(its) are going to engineer a "soft landing".

This piece is remarkable, as Anatole is not generally the voice of caution, but his current view is definitely not bullish, and the idea that you and Anatole are looking at this the same way is a further cautionary signal. Thanks for another great post.

Expand full comment

Thanks for sharing these insights!

Expand full comment

Eye-opening ! I haven't words to express my gratitude for such insightful financial newsletter. I have been payed subscriber to several newsletters. None was giving so clear view of market's probable

itinerary . Thank you very much.

Expand full comment

Regardless of what anyone thinks of the central bank itself or its present members, I continue to marvel at the notion of accomplishing two diametrically opposing goals at the same time, namely stable prices and full employment. Add in the third unofficial goal of “equity”, and we see the need of knowing exactly how many fairies can dance on the head of a pin, and for how long.

I don’t know what markets will do if they ever come to consider this, but tend to believe that passing that proverbial camel through the eye of a needle may be easier.

Keep up the good work Dave.

Expand full comment